Water Power Enterprises (h2oPE)

Social Enterprise (Community Interest Company (CIC))

Mission

•Reduce Carbon Emissions through small scale hydro

•Community Involvement

Aims

• Install 5MW of capacity by 2015

• Saving 6,500 tonnes of CO2 per year

• Currently working on sites with upwards of

8MW of capacity mainly in Derbyshire,

Yorkshire, Lancashire

Dual Track Business Plan

1st Track

• Community owned hydro

– detailed scheme design

– regulatory permissions

– Power Purchase Agreement (PPA)

– raise finance to h2oPE’s social business model

– community ownership

– project management of construction

– maintenance contract

Dual Track Business Plan

2nd Track

Wholly or co-own hydro sites for our own

income stream.

Profits will be reinvested in development of

more community sites

New Mills, Derbyshire

Scheme Details

• All permissions obtained

• 70kw Archimedean Screw

• Approx 266,000kWh/yr

• Cost approx £250,000

• Will save 116 tonnes CO2/yr or 4,600 tonnes in lifetime (approx 13 million car miles)

• Work started 3rd March – finish end July

Artist’s Impression

Site Construction

Coffer Dam

Background

• Public Exhibition Jan 2007 to help with Planning Application

• Approached by local Friends of the Earth for greater involvement

• Public Meetings

• Needed to identify best ‘Legal Vehicle’ by which local people could become involved

• Industrial and Provident Society for Benefit of the Community – called Torrs Hydro New Mills Ltd

How to raise £250,000

Our social business model...

� Grants

� Equity (social investors)

� Loan

Grants

• Grants target - 30% capex

• Peak District National Park - £15,000

• East Midlands Development Agency - £75,000

(pilot the community owned route)

• The Co-Op Group - £45,000 (THNM’s status as

an IPS)

TOTAL £135,000 (54% of total)

Equity

• Form THNM as a BenCom IPS - adopt model

rules

• Draft Prospectus (target interest rate 7.5%) –

agreed by solicitor

• Launch of Prospectus

• Promotion of Prospectus

Raised £97,800 (39% of total)

208 shareholders – majority in New mills

Share Offer worked because

• Build up of contacts (head of steam) prior to

Launch

• Hire of PR person

• Enterprise Investment Scheme – tax relief

• National Publicity (helped by FoE)

• Right idea at the right time

Loan

Co-Op Bank

• Facility up to £60k

• Good ‘fit’ with Co-Op group – ie THNM as an

IPS, Co-op grant, Co-op loan

Community Benefit

• IPS Ben Comm

• After overheads and interest on shares,

remainder goes to community of New Mills

for purposes of ‘economic regeneration and

environmental sustainability’

• Aim to give immediate benefit to the

community – 5k per year